PSI6.3.2 - Total Benefits on Retirement at Normal Retirement Age: Normal Retirement Age - Normal Retirement Age and Normal Pension Age Distinguished

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Do not confuse "normal retirement age" (which we generally refer to as normal retirement date) with "normal pension age" a term used for preservation purposes. Normal pension age is defined in the Social Security Act 1973 (see JOM 78). The two ages will often be the same, though not necessarily so. For example, if a scheme with an NRA of 65 permits a member to retire at 60 on completion of a specified number of years' service, then individual members can have different normal pension ages. This does not affect the NRA for the scheme nor our limits. A member who retires at age 60 will be treated for our purposes as if he or she had retired early. Subject to scheme rules, a member who is not subject to the "new" regime for early/late retirement (see PSI9.1.11) can have a pension limited by reference to the greater of N/60ths or N/NS x P (see PSI10.1.12).

This does not conflict with preservation requirements, because normal pension age has been reached; preservation is concerned with people who leave service before that age.